2022-04-27 17:26
publication
2022-04-27 17:26
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The declines of the main indices on the WSE are endless. Historical series are continued by large and medium-sized companies. The sell off of bank shares was unmanageable during Wednesday’s trade.
At the end of the session, the WIG20 dropped by 0.7%, thus it is lower for the 8th time in a row, which has not happened since June 2015. WIG after a decline of 1.18%. was lower than 8 sessions one after the other, as in October 2020. The most, 10 sessions in a row, is lowered by mWIG40 (-2.77%), which is the worst series since May 2012, when there were 11 such sessions. the series is counted only from April 20 by sWIG80 (-1.36%). The turnover amounted to PLN 1.32 billion, of which PLN 1 billion related to large companies.
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Sectorally, 5 industry indices recorded increases. They were: mining (3.29%), energy (1.19%), fuels (0.93%), IT (0.69%) and games (0.39%). Among the remaining ones, food companies (-10.14%), chemical companies (-4.43%) and banks (-3.83%) fell the most.
The power of supply on the Warsaw Stock Exchange is not exhausting. To strongly declining Tuesday’s session in the US the course of trading on Wednesday was predictable, especially as investors could discount from the morning the potential impact of turning off the gas tap. It was coming to this the weakness of the zloty and individual signals from individual companies. However, the whole was determined by the sell-off of the banking sector. While the willingness to feed on growing contracts and an upward opening in the US was evident on the European stock exchanges, the bear market dominated in Warsaw from the beginning to the end of the session.
In the index of the largest companies, as in other market segments, the declines were driven by the sell-off of banks. This may be the further positioning of investors in the face of government plans to help borrowers or the effect of undermined confidence in the stability of the system in which banks operate. The leader of the discount on blue chips was mBank (-7.33%), followed by Pekao (4.3%), Santander (-4%) and PKO BP (-1.32%).
The Allegro exchange rate deepens the closing lows (-2.3%), a downgraded “neutral” recommendation for the company from JP Morgan appeared on the market.
Previously, the issuing of recommendations was suspended. The target price was estimated at PLN 33.7.
The strong sell-off of banks was unsustainable, even with the increases of other large companies such as KGHM (3.54%), PKN Orlen (1.35%) and PGNiG (0.94%). JSW (2.3%), PGE (1.09%) and CD Projekt (0.91%) were also higher.
The spin of Russian gas has not yet affected PGNiG’s price, which had previously signaled the failure to extend the Yamal contract (it expires in 2022) and the securing of alternative supplies. PGNiG has confirmed that the natural gas supplied by Gazprom has been completely suspended. As the company said, the situation does not currently affect the current deliveries to customers who receive fuel in accordance with their demand.
In the second line, even more happened thanks to the “race” for the title of relegation leader and a place on the podium. The first fight was between Alior (-14.33%) and Kernel (-16.08%). The former reported the results for the first quarter of 2022, which turned out to be below consensus. The latter informed that due to the blockade of the Ukrainian Black Sea ports as a result of Russian aggression, the management board decided to sell some of the assets. The transaction is to be worth approximately USD 210 million.
On the other hand, Millennium (-6.17%) and Grupa Azoty (-6.07%) competed for a place on the podium of the most losing companies. The decline of the Millennium can be explained by the general sentiment towards the sector and the fact that it is this bank that, according to experts, is the most sensitive to government proposals. Grupa Azoty’s price, in turn, may discount gas problems, which is the largest industrial consumer in Poland. After the trading session, the company will publish its annual report for 2021.
On the other hand, there was an increase in the XTB price (6.94%), which published fantastic estimates for the first quarter of 2022.
On the broad market, it is worth noting the growth of coal companies, especially Bumech (7.4%), whose price is at its highest since 2014.
Shipper’s shares also increased significantly (14.73%), but the company did not provide new information in the ESPI system.
